Your Right to Know

WASHINGTON — The United States will put diplomatic pressure on countries implicated in thefts of
trade secrets and seek stronger international enforcement of intellectual-property protections,
according to a government report.

President Barack Obama’s administration pledged to share more intelligence with companies about
the countries involved in economic espionage and the methods used to steal corporate information,
and to study the need for stronger U.S. laws against trade-secret theft.

“Other governments must recognize that trade-secret protection is vital to the success of our
economic relationships and that they must take steps to strengthen their enforcement against
trade-secret theft,” according to a document released yesterday outlining the administration’s
trade-secret strategy.

The trade-secret report was released by intellectual-property enforcement coordinator Victoria
Espinel.

It comes a day after the computer-security firm Mandiant Corp. said in a report that the Chinese
army probably is the source of hacking attacks against at least 141 companies worldwide since
2006.

Yesterday in Beijing, China’s defense ministry issued a strong denial and insisted that the
report was flawed. At a news conference, the ministry suggested that the allegations were
destructive and challenged the study.

The trade-secret strategy looks at more than computer-based theft. It says the pace of economic
espionage is accelerating through recruitment of current and former employees of companies, as well
as cyber-intrusions against U.S. businesses, law firms, universities and financial
institutions.

While it doesn’t single out China, yesterday’s report cites examples of economic espionage in
which corporate secrets were passed to Chinese institutions.

“Trade-secret theft threatens American businesses, undermines national security, and places the
security of the U.S. economy in jeopardy,” the document says. “These acts also diminish U.S. export
prospects around the globe and put American jobs at risk.”

The administration will intensify efforts to apply diplomatic pressure on countries “where there
are regular incidents of trade-secret theft” and press them to strengthen enforcement action,
according to the strategy document. In trade negotiations, the United States will seek agreements
for other countries to provide protections for corporate secrets similar to those in U.S. law.

The director of national intelligence will oversee increased sharing of data on trade-secret
theft with the private sector, including information on foreign governments involved in espionage
and the types of technology targeted, the document says.